Stock market today: Wall Street rises to a record as it waits for the Fed

Stock market today: Wall Street rises to a record as it waits for the Fed

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NEW YORK (AP) — The S&P 500 rose to a record high Tuesday as Wall Street made some of its final moves before hearing what the Federal Reserve will do about interest rates.

The benchmark index rose 29.09 points, or 0.6%, to 5,178.51 and surpassed its all-time high set last week. The Dow Jones Industrial Average jumped 320.33, or 0.8%, to 39,110.76, and the Nasdaq composite gained 63.34, or 0.4%, to 16,166.79.

All three indexes erased losses from earlier in the day to rise.

International Paper rose 11%, the biggest gain in the S&P 500 after naming Andrew Silvernail, an executive at investment firm KKR, as its new chief executive.

Unilever's US-listed shares rose 2.8% after it said it was spinning off Ben & Jerry's and its ice cream business, while cutting 7,500 jobs.

Nvidia made progress throughout the day and went from being one of the heaviest weights on the market to one of its most powerful powerhouses. Its enormous size gives it enormous influence on the indexes, and it went from a loss of almost 4% to a gain of 1.1%.

A day earlier, it unveiled new products at its developer conference, which analysts say should keep Nvidia ahead of its competitors. Its stock was already has more than tripled in the last 12 months due to the frenzy around artificial intelligence technology.

On the losing side of Wall Street was Super Micro Computer, whose shares had previously gone from less than $100 to more than $1,000 in a year. The seller of servers and storage systems used in artificial intelligence and other computing sank 9% after it said it was looking to sell 2 million shares.

Elsewhere on Wall Street, attention was focused on the Federal Reserve.

The Federal Reserve began its latest interest rate meeting and will announce its decision on Wednesday. The general expectation is that it will leave its main interest rate at its highest level in two decades. The hope is that he will indicate that he still hopes to cut rates three times by the end of this year, as he hinted at a few months ago.

Part of the run to record highs in US stocks is due to hopes of such cuts, which would ease pressure on the economy and financial system. but recent reports in inflation have consequently been entering worse than expected. That could force the Federal Reserve to say it will make fewer rate cuts this year, and traders have already abandoned earlier expectations that the first cut of the year would come on Wednesday.

Bank of America strategists expect Fed officials to stick to forecasts that show the average member still expects three cuts in 2024. But it's a close call and “risks lean toward fewer cuts being signaled.” according to strategists led by Mark Cabana.

Treasury yields fell in the bond market ahead of the announcement. The 10-year Treasury yield fell to 4.29% from 4.33% late Monday.

High yields and interest rates can hurt stock prices overall, while absorbing dollars and enthusiasm from excited parts of the market.

The price of Bitcoin has been falling overall since reaching a high of over $73,000 last week. It is known for carrying investors through sharp price swings. It fell further on Tuesday and fell below $63,900.

On foreign stock markets, the Japanese Nikkei 225 rose 0.7% after The Bank of Japan raised its reference interest rate. for the first time in 17 years. In a historic move, he moved the rate back to a range of zero to 0.1% and made other changes, ending a long experiment of below-zero rates aimed at boosting the economy and inflation.

The era-defining move was widely expected and still keeps interest rate policies flexible, analysts said.

Shares fell 1.2% in Hong Kong and 0.7% in Shanghai following the property developer's woes. China Evergrande Group said Beijing's market watchdog fined it 4.2 billion yuan ($333.4 million) for allegedly falsifying its income, among other violations.

Stocks were mixed elsewhere in Asia and Europe.

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AP Business writers Matt Ott and Elaine Kurtenbach contributed.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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